Best Practices for Selling Hosted & Cloud Communications

1. Best Practices for Selling Hosted & Cloud Communications Alex Doyle BroadSoft alex@broadsoft.com

2. Our Goal for the Broadvox Partner Community…….and this Session Our goal – help Broadvox partners have huge success in selling Hosted and Cloud Communications solutions World’s leader in hosted communications technology Leader in hosted communications solutions

3. Executive Summary:Moment of Opportunity for Broadvox Partners • Industry Moving towards Cloud Solutions  Customers Asking for Hosted & Cloud Solutions • Moment of Opportunity for the Channel • Trends driving Cloud Give Advantage to Indirect Channel • Stronger relationship with customer, More Revenue, Lower Churn • Different Market Segments, Different Needs • Identifying Opportunity; Bring the right sales pitch to your prospect • Can’t just sell technology • Keys to Sales Success • (1) Use It Yourself; (2) Demo; (3) Answer “Why Hosted”; (4) Sell Roadmap BroadSoft ®, Inc. Proprietary and Confidential, do not copy, duplicate or distribute.

4. Where BroadSoft Fits Broadvox Service Providers Service Providers Global Leader in IP-based communications software Service Providers 40% Market Share (Infonetics) Broadvox Partners Service Providers Service Providers Service Providers • 425+ Customers in 65 countries • 16 out of top 25 worldwide carriers Customers Service Providers Service Providers Service Providers

5. BroadvoxGO!VBX – Hosted/Cloud Unified Communications • All the Power and Productivity of Unified Communications….…with none of the Cost, Pain, and Overhead of Managing Complex Boxes GO!VBX Target Market 5-1000 employee businesses GO!VBX Product Lines GO!VBX GO!VBX Managed

6. What We’ll Cover • Opportunity & Market Trends • a Moment of Opportunity for Channel Community • Why is this Happening? Root Buying Causes • Approaching the Market • Where Hosted/Cloud Fits – how to Message & Position Hosted • Selling Hosted & Cloud – Best Practices(Observations from 425+ service providers worldwide) • Best Practices for Selling Hosted & Cloud Communications

7. Opportunity: What the analysts are saying 80% CAGR for Hosted PBX/IP Centrex 34% CAGR for Hosted PBX/IP Centrex

8. What’s the Impact of a Successful Hosted Customer?Hosted Business Case Study – Real World Example • Real-World Hosted Proposal – 3 Year Contract • Connectivity • 1.5MB network connection • “shadow”/redundancy connectivity • Minutes & Usage • Unlimited Local Calling • 14,000 Bundled Regional and Long Distance minutes • Employee Seats • 112 Polycom mid-level phones • Employee “mobility” package • Logistics • System Deployment Project team • Site Survey & Installation • Total One Time Cost - $6,665 • Monthly Recurring Cost - $14,023 Key Takeaway: 10x increase in MRR vs. “Trunking Only”

9. What’s Driving the Market Shift? Business Strategy “Focus on your Core Business – not your Chore Business” Economics Predictable Costs OpEx v. CapEx “Utility” Purchase Technology Complexity Upgrades Mobility Demographics Remote/Flex Working Green Initiatives Multi-Location

10. Cloud Business Communications is like……..a Gym Membership Cloud v. Premises Decision Point Multi-Function Gymnasium Simple Exercise Bicycle

11. Moment of Opportunity for the Channel • Ideal Vehicle for Recurring Revenue Stream • Opportunity to Transform your Business • Lower Churn, higher ARPU • Stronger relationship with customer – Be Indispensable! • Leverage next wave of customer needs • Customers wantto engage Channels • More Functionality  More Need for Trusted Partner • Trust, Local Presence, Expertise • The Same Reasons that are Driving Hosted Growth Will Drive Channel Growth

12. Thinking about the Market for Hosted • Different Segments, Different Messages • Small & Micro – Cost, Bundles • Medium – Productivity • Large - Integration • Key Opportunity for Channel in Small and Mid • Midmarket  actually largest spend • Midmarket  “Blue Ocean” • HUGE opportunity for Hosted Large Ent 1000+ Midmarket 100-1000 seats Small Business <100 seats Micro Business <5 seats BroadSoft ®, Inc. Proprietary and Confidential, do not copy, duplicate or distribute.

13. Why Hosted for the Midmarket (~100-1000 seats)? OR: “What Signals a Great Hosted Prospect?” Productivity Sale • Multi-Site • High Productivity Workers • Mobile • Video • Receptionists • Call Centers • Flexible Growth • Add New Offices • Grow/Shrink Usage • ~350 Employees • 21 Countries • Highly Mobile • Call Centers for Customer Service and Support • Video for Internal Meetings and Reviews Our own best case study! Could not meet our needs with a PBX system

14. Why Hosted for the SMB (~1-100 seats)? OR: “What Signals a Great Hosted Prospect?” Cost/Benefits Sale • Simple Needs • Fixed Cost, No worry • “Never Miss a Call” – Missed Call = Missed Revenue • “Front Office” capability • Virtual Attendant, Disaster Recovery, Integrate Mobile • Simple Productivity Examples • Voice Mail to Email Two Types of SMB Prospects Bargain Hunters Cost-Driven Keep it Simple – Simple Bundles One-Visit Close Innovators Productivity-Driven “Add-On” Bundles & Upsells Sell Roadmap

15. Selling Hosted & Cloud Communications – Four Key Principles • Use the Solution Yourself! • Key Differentiator between winners & losers – have Broadvox set you up! • Be Able to Deliver a Killer Demo • It’s an Experiential Sale • Tell stories: “how will this change your business?” • Sell Roadmap • Counterintuitive – but it really works! Key value of Hosted! • Be able to answer – “Why Hosted? Why Cloud?” • Economic, Technology, Demographics  but mainly Strategic • “Focus on your Core Business, not your Chore Business” BroadSoft ®, Inc. Proprietary and Confidential, do not copy, duplicate or distribute.

16. Example End Customer:Large Multi-Site Professional Office • All sites connected with common with voice, video, & mobile business service • Needs: • Save Attorney’s Time  Time is Money • Centralizing Multi-Sites  More Efficiency • Mobile Integration for highly-mobile workforce • Utilize Video for Meetings, Recruitment, Training  Cost Saving & Time Saving • 49th largest law firm in US • 750+ attorneys in 20+ offices

17. Small Business Case Study – Healthcare:Institute for Child & Family Health (~100 employees) • Health, Education, Prevention Clinic • Five outpatient clinics; dozens of outreach centers • Traveling medical staff – multiple offices per week • Solution – Multi-Site Hosted PBX • Fixed,Mobile and DECT Cordless Phones • Bundled Microsoft Exchange, Voice Mail-to-Email • Customer Needs • Faster Patient Service & Responsiveness – Calls, Email, Voice Mail • Handling Roaming medical staff • Ability to Support Planned Expansion • Ability to Support Seasonal Traffic and Needs

18. Example End Customer:Multi-Site Retail • Hosted Business solution connecting multiple outlet stores to central HQ office • Needs: • Simplified Management • Quick & Inexpensive deployment • Many sites, one system • Redundant Backup • Local Numbers, Uniform dial plan Blends Hosted & Trunking within One Customer

19. Winning Messaging to Your Customers:Better and Smarter • Performance: Makes Your Business Better • Missed call = Missed revenue • Make decisions smarter & faster • Work Anywhere • Strategy: Smarter Way to Run Your Business • Geoffrey Moore: “Core vs. Context” • “Focus on your Core Business, not your Chore Business” • Key Examples: • Use/Buy Only What You Need • Scaling, seasonality, etc. • Disaster Recovery • Reallocation of Resources (from “Context” to “Core”)

20. Our Goal for the Broadvox Partner Community…….and this Session Our goal – help Broadvox partners have huge success in selling Hosted and Cloud Communications solutions World’s leader in hosted communications technology Leader in hosted communications solutions

21. THANK YOU!